Demand for commercial and residential properties in the Philippines has been increasingly high as seen in the booming real estate market for the past decade. Aside from the purchases from Overseas Filipino Workers (OFWs) abroad and from the locals, one big factor for the high buying demand is the rapid emergence and increase in numbers of Business Process Outsourcing (BPO) companies in the country, hiring Filipinos and foreigners alike who are able to purchase condominium units out of necessity, convenience and for investment. BPO companies consider the Philippines as one of the most cost-effective outsourcing destinations in the Asia Pacific region because of its highly affordable rentals of condominium units and office spaces and outstanding talent pool in the Filipino workforce.

Purchases of condominiums from OFWs and foreigners have been made simple and easy through online property listing websites. Online property listing websites are easy tool to promote real estate properties for sale and are designed for a less intervention search offering a wide array of condominium units and house and lots to choose from.

Before buying a condominium unit (specially for foreigners), know that Philippine laws have set certain limitations in terms of ownership of real estate properties such as lands, house and lot and residential or commercial condominium units. There is the 1987 Philippine Constitution and the Public Land Act that regulate ownership of land in the Philippines. The Constitution states that except in cases of hereditary succession, only those individuals, corporations and associations allowed to acquire or hold lands in the public domain can acquire private lands. In the same manner, the Public Land Act (Commonwealth Act No 141) expressly limits the acquisition of land in the public domain to Filipino citizens, or domestic corporations or associations of which at least 60% of the capital stock is owned by Filipino citizens. In other words, foreign individuals or corporations (wherein more than 40% of the capital stock is owned by foreign individuals) cannot own land in the Philippines.

If these laws limit foreign ownership in Philippine lands, we go to our question:

Can foreigners buy condominiums in the Philippines?
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condominium laws

Republic Act No. 4726, also known as “The Condominium Act,” allows individuals (Filipino or Foreigners) and corporations to buy and co-own the land over where the condominium is built aside from the ownership of own individual unit/s. Under the law, a condominium is defined as an interest in real property consisting of a separate interest in a unit in a residential, industrial or commercial building and an undivided interest in common, directly or indirectly, in the land on which it is located and in other common areas of the building.

The Condominium Act provides for the rights of the buyer and the extent of his/her ownership or interest in the common areas of a condominium. It also outlines the rights of the buyers of condominium against property owners or developers who take advantage of trusting and innocent buyers. One of the most significant provisions of the Condominium Act is that it expressly allows foreigners to own Philippine real estate through the purchase of condominium units or townhouses constituted under the Condominium principle although they do not own the land on which it is situated subject only to the limitations as provided under the said Act and other pertinent laws.

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